2. Prepare a contribution format income statement for Quarter 1 of Year 3. Jay Corporation Budgeted Contribution Format Income Statement For Year 3, Quarter 1 Sales Variable expenses: Cost of goods sold Sales commissions Shipping expense Total variable expenses Contribution margin Fixed expenses: Administrative salaries Rent expense Shipping expense Depreciation expense Total fixed expenses Net operating income 493,000.00 77,520.00 45,000.00 27,000.00 25,750.00 36,000.00 $ 816,000.00 133,750.00